Top 25 markets to buy a vacation rental in the USA

Top 25 markets to buy a vacation rental

Author:
Nancy Trejos, USA TODAY

Published:
1:34 AM CDT August 14, 2018

Updated:
1:52 AM CDT August 14, 2018

The top 25 markets for buying a vacation rental

Vacasa, a vacation rental property management company, ranked the top 25 markets for buying a vacation rental in the USA. Big Bear, California, is the No. 25 market to buy a vacation rental. One example of a rental: Peak-Hawk is an A-frame home in a quiet neighborhood less than two miles from the Bear Mountain Ski Resort.

North Coast, Oregon, is the No. 24 top market for buying a vacation rental. Aliyah, an oceanfront home with a hot tub, is one example of a property there.

South Padre Island in Texas is the No. 23 top market to buy a vacation rental. Solare Tower 606 is a three-bedroom waterfront, dog-friendly condo with a private balcony, shared pools and hot tubs.

The Central Coast of Oregon is the No. 22 top market to buy a vacation rental, according to Vacasa. Fantasea is a three-bedroom house in Lincoln City with ocean views. It has a private hot tub and a landscaped yard.

Sun River, Oregon, is the No. 21 top market to buy a vacation rental in the USA. Salishan Lane 05 is a three-bedroom home with a golf course view and hot tub.

The Gulf Coast of Florida is the No.
20 top market to buy a vacation rental in the USA. This is Peace O' Mind in Destin, a five-bedroom, oceanfront home with space for up to 20 guests near Crystal Beach.

Park City, Utah, is the No. 19 top market to buy a vacation rental. Park City Mountain Retreat is a six-bedroom estate with a deck with mountain views, hot tub, and a jetted tub near the slopes.

Fort Myers Beach, Florida, is the No. 18 top market to buy a vacation rental. Penthouse Paradise is a three-bedroom home with beach views from a balcony. It has a shared pool, hot tub and tennis court.

Leavenworth, Washington, is the No. 17 top market for buying a vacation rental, according to Vacasa. Bearfoot Chalet is a spacious lodge nestled in the North Central Cascades.

Marathon, Floirda, is the No. 16 top market to buy a vacation rental, according to Vacasa. Kokomo is a four-bedroom
waterfront home with a private pool and dock near the beach.

Pensacola Beach. Florida, is the No. 15 top market to buy a vacation rental, according to Vacasa. Starboard Village #211 is a three-bedroom beachfront condo with two balconies and a shared pool.

Coachella Valley, California, is the No. 14 top market to buy a vacation rental, according to Vacasa. Cozy at Kitty Hawk in northern Palm Springs offers a private pool and hot tub and a sunny patio.

Key West, Florida, is the No. 13 top market to buy a vacation rental. Modern Rendezvous is a two-bedroom home with a private pool near Higgs Beach, fishing piers and the Key West Nature Preserve.

Marco Island, Florida, is the No. 12 top market to buy a vacation rental. Shining Jewel on the Island is a fully-remodeled, waterfront home with a private pool, lanai, lake, and golf course views.

Gulf Shores, Alabama, is the No. 11 top market to buy a vacation rental. The Original Retreat in Orange Beach is a bayfront home with views, a pier, a boat slip, and a private smokehouse.

Chelan, Washington, is the No. 10 top market to buy a vacation rental, according to Vacasa. Collins Lakehouse is a three-bedroom lakefront house on the south shore of Lake Chelan. It has a private hot tub, dock, a swim float, and moorage buoy.

North Kona, Hawaii, is the No. 9 top market to buy a vacation rental, according to Vacasa. Kona Dreams is a two-bedroom Captain Cook home on the Big Island with an ocean view lanai and two-person kayak. It is up the street from Pebble Beach and Kaohe Bay.

Ludlow, Vermont, is the No. 8 top market to buy a vacation rental, according to Vacasa. Ludlow’s Gem is a two-bedroom with a loft lakefront home with a private deck, fire pit and dock.

Ocean City, Maryland, is the No. 7 top market to buy a vacation rental, according to Vacasa. Coastal Chic is a one-bedroom condo with a shared pool and jetted master tub. It is less than a block from the beach.

The Emerald Coast of Florida is the No 6 top market to buy a vacation rental, according to Vacasa. Gone Gulfin’ in Santa Rosa Beach is a three-bedroom Seagrove escape with a wrap-around porch and firepit and shared use of a swimming pool and tennis courts.

x

Myrtle Beach, South Carolina, is the No. 4 market for buying a vacation rental, according to Vacasa. This resort condo with a shared hot tub is called Arcadian Dunes 10-339.

Kissimmee, Florida, is the No. 3 top market for buying a vacation rental.
Caribbean Retreat is a four-bedroom house in the gated community of Cumbrian Lakes. The house is located within a 10-mile radius of Disney World, Seaworld, and Kissimmee Old Town. It has a private pool.

Smoky Mountains, Tennessee, is the No. 2 top market to buy a vacation rental, according to Vacasa. Touch of Elegance Cabin in Sevierville has two bedrooms and a loft. It has a hot tub, three levels of decks, and views of the mountains.

Forgotten Coast, Florida, is the top market to buy a vacation rental in the USA. This is one property for sale: Barefoot Cottages #D117 is a three-bedroom home with a shared pool and hot tub in Port St. Joe.

01/25

Vacasa, a vacation rental property management company, ranked the top 25 markets for buying a vacation rental in the USA. Big Bear, California, is the No. 25 market to buy a vacation rental. One example of a rental: Peak-Hawk is an A-frame home in a quiet neighborhood less than two miles from the Bear Mountain Ski Resort.

02/25

North Coast, Oregon, is the No. 24 top market for buying a vacation rental. Aliyah, an oceanfront home with a hot tub, is one example of a property there.

03/25

South Padre Island in Texas is the No. 23 top market to buy a vacation rental. Solare Tower 606 is a three-bedroom waterfront, dog-friendly condo with a private balcony, shared pools and hot tubs.

04/25

The Central Coast of Oregon is the No. 22 top market to buy a vacation rental, according to Vacasa. Fantasea is a three-bedroom house in Lincoln City with ocean views. It has a private hot tub and a landscaped yard.

05/25

Sun River, Oregon, is the No. 21 top market to buy a vacation rental in the USA. Salishan Lane 05 is a three-bedroom home with a golf course view and hot tub.

06/25

The Gulf Coast of Florida is the No.
20 top market to buy a vacation rental in the USA. This is Peace O' Mind in Destin, a five-bedroom, oceanfront home with space for up to 20 guests near Crystal Beach.

07/25

Park City, Utah, is the No. 19 top market to buy a vacation rental. Park City Mountain Retreat is a six-bedroom estate with a deck with mountain views, hot tub, and a jetted tub near the slopes.

08/25

Fort Myers Beach, Florida, is the No. 18 top market to buy a vacation rental. Penthouse Paradise is a three-bedroom home with beach views from a balcony. It has a shared pool, hot tub and tennis court.

09/25

Leavenworth, Washington, is the No. 17 top market for buying a vacation rental, according to Vacasa. Bearfoot Chalet is a spacious lodge nestled in the North Central Cascades.

10/25

Marathon, Floirda, is the No. 16 top market to buy a vacation rental, according to Vacasa. Kokomo is a four-bedroom
waterfront home with a private pool and dock near the beach.

11/25

Pensacola Beach. Florida, is the No. 15 top market to buy a vacation rental, according to Vacasa. Starboard Village #211 is a three-bedroom beachfront condo with two balconies and a shared pool.

12/25

Coachella Valley, California, is the No. 14 top market to buy a vacation rental, according to Vacasa. Cozy at Kitty Hawk in northern Palm Springs offers a private pool and hot tub and a sunny patio.

13/25

Key West, Florida, is the No. 13 top market to buy a vacation rental. Modern Rendezvous is a two-bedroom home with a private pool near Higgs Beach, fishing piers and the Key West Nature Preserve.

14/25

Marco Island, Florida, is the No. 12 top market to buy a vacation rental. Shining Jewel on the Island is a fully-remodeled, waterfront home with a private pool, lanai, lake, and golf course views.

15/25

Gulf Shores, Alabama, is the No. 11 top market to buy a vacation rental. The Original Retreat in Orange Beach is a bayfront home with views, a pier, a boat slip, and a private smokehouse.

16/25

Chelan, Washington, is the No. 10 top market to buy a vacation rental, according to Vacasa. Collins Lakehouse is a three-bedroom lakefront house on the south shore of Lake Chelan. It has a private hot tub, dock, a swim float, and moorage buoy.

17/25

North Kona, Hawaii, is the No. 9 top market to buy a vacation rental, according to Vacasa. Kona Dreams is a two-bedroom Captain Cook home on the Big Island with an ocean view lanai and two-person kayak. It is up the street from Pebble Beach and Kaohe Bay.

18/25

Ludlow, Vermont, is the No. 8 top market to buy a vacation rental, according to Vacasa. Ludlow’s Gem is a two-bedroom with a loft lakefront home with a private deck, fire pit and dock.

19/25

Ocean City, Maryland, is the No. 7 top market to buy a vacation rental, according to Vacasa. Coastal Chic is a one-bedroom condo with a shared pool and jetted master tub. It is less than a block from the beach.

20/25

The Emerald Coast of Florida is the No 6 top market to buy a vacation rental, according to Vacasa. Gone Gulfin’ in Santa Rosa Beach is a three-bedroom Seagrove escape with a wrap-around porch and firepit and shared use of a swimming pool and tennis courts.

21/25

x

22/25

Myrtle Beach, South Carolina, is the No. 4 market for buying a vacation rental, according to Vacasa. This resort condo with a shared hot tub is called Arcadian Dunes 10-339.

23/25

Kissimmee, Florida, is the No. 3 top market for buying a vacation rental.
Caribbean Retreat is a four-bedroom house in the gated community of Cumbrian Lakes. The house is located within a 10-mile radius of Disney World, Seaworld, and Kissimmee Old Town. It has a private pool.

24/25

Smoky Mountains, Tennessee, is the No. 2 top market to buy a vacation rental, according to Vacasa. Touch of Elegance Cabin in Sevierville has two bedrooms and a loft. It has a hot tub, three levels of decks, and views of the mountains.

25/25

Forgotten Coast, Florida, is the top market to buy a vacation rental in the USA. This is one property for sale: Barefoot Cottages #D117 is a three-bedroom home with a shared pool and hot tub in Port St. Joe.

Key West, Florida, is the No. 13 top market to buy a vacation rental. Modern Rendezvous is a two-bedroom home with a private pool near Higgs Beach, fishing piers and the Key West Nature Preserve.

Vacasa

Owning a vacation rental can be lucrative.

A growing number of travelers are opting out of hotels and seeking condos or apartments that make them feel like they are living temporarily like a local.

Vacasa, a vacation rental property management company, has for the first time ranked the top 25 markets for buying a vacation rental in the USA.

To come up with the list, the company analyzed home sales data in vacation markets throughout the country. It then overlaid that with the actual performance data for more than 500,000 vacation rental properties. From there, it compared each region’s net operating income with the cost of buying a home to come up with the market’s cap rate. The rankings were based on that cap rate.

“Not only is it important to consider the earning potential of the home to ensure the return on investment is on par with expectations, but also the factors that could draw guests to the area,” says Eric Breon, founder and CEO of Vacasa.

Nearly half of the top 25 markets are concentrated in the southeast part of the county with the Forgotten Coast of Florida ranking No. 1. Florida dominated the list, with nine of its communities making the cut. The Smoky Mountains of Tennessee ranks No. 2, and Kissimmee, also in Florida, made it to No. 3.

Rounding out the top five are two South Carolina communities: Myrtle Beach and Hilton Head Island.

Representing the west coast are Sunriver, the Central Coast, and the North Coast of Oregon; Lake Chelan and Leavenworth in Washington; and Coachella Valley and Big Bear in California. Hawaii made the list with North Kona.

See the 25 top markets to buy a vacation rental in the slideshow above.

This five-bedroom rental in Waco, Texas, sleeps 20 and rents for an average of $633 a night.

For more information: https://www.homeaway.com/vacation-rental/p878965vb

This three-bedroom rental in Saugerties, N.Y., sleeps 14 and rents for an average of $1,250 a night.

For more information: https://www.homeaway.com/vacation-rental/p376401

This six-bedroom rental in Maple, Wis., sleeps 20 and rents for an average of $786 a night.

For more information: https://www.homeaway.com/vacation-rental/p282464

This five-bedroom rental in Garden City, Utah, sleeps 26 and rents for an average of $339 a night.

For more information: https://www.homeaway.com/vacation-rental/p835338vb

This three-bedroom rental in South Londonderry, Vt., sleeps nine and rents for an average of $450 a night.

For more information: https://www.homeaway.com/vacation-rental/p325527vb

This one-bedroom rental in Gambier, Ohio, sleeps four and rents for an average of $200 a night.

For more information: https://www.homeaway.com/vacation-rental/p612543vb

This four-bedroom rental in Asheville, N.C., sleeps eight and rents for an average of $718 a night.

For more information: https://www.homeaway.com/vacation-rental/p758586vb

This four-bedroom rental in Knoxville, Md., sleeps 13 and rents for an average of $700 a night.

For more information: https://www.homeaway.com/vacation-rental/p601464vb

This four-bedroom rental in Marble Falls, Texas, sleeps 16 and rents for an average of $1,000 a night.

For more information: https://www.homeaway.com/vacation-rental/p155123

This three-bedroom rental in Tivoli, N.Y., sleeps six and rents for an average of $452 a night.

For more information: https://www.homeaway.com/vacation-rental/p255235

This two-bedroom rental in Woodstock, Vt., sleeps eight and rents for an average of $243 a night.

For more information: https://www.homeaway.com/vacation-rental/p3003186

This 11-bedroom rental in Clyde Park, Mont., sleeps 30 and rents for an average of $1,500 a night.

For more information: https://www.homeaway.com/vacation-rental/p271592vb

01/24

This five-bedroom rental in Waco, Texas, sleeps 20 and rents for an average of $633 a night.

02/24

For more information: https://www.homeaway.com/vacation-rental/p878965vb

03/24

This three-bedroom rental in Saugerties, N.Y., sleeps 14 and rents for an average of $1,250 a night.

04/24

For more information: https://www.homeaway.com/vacation-rental/p376401

05/24

This six-bedroom rental in Maple, Wis., sleeps 20 and rents for an average of $786 a night.

06/24

For more information: https://www.homeaway.com/vacation-rental/p282464

07/24

This five-bedroom rental in Garden City, Utah, sleeps 26 and rents for an average of $339 a night.

08/24

For more information: https://www.homeaway.com/vacation-rental/p835338vb

09/24

This three-bedroom rental in South Londonderry, Vt., sleeps nine and rents for an average of $450 a night.

10/24

For more information: https://www.homeaway.com/vacation-rental/p325527vb

11/24

This one-bedroom rental in Gambier, Ohio, sleeps four and rents for an average of $200 a night.

12/24

For more information: https://www.homeaway.com/vacation-rental/p612543vb

13/24

This four-bedroom rental in Asheville, N.C., sleeps eight and rents for an average of $718 a night.

14/24

For more information: https://www.homeaway.com/vacation-rental/p758586vb

15/24

This four-bedroom rental in Knoxville, Md., sleeps 13 and rents for an average of $700 a night.

16/24

For more information: https://www.homeaway.com/vacation-rental/p601464vb

17/24

This four-bedroom rental in Marble Falls, Texas, sleeps 16 and rents for an average of $1,000 a night.

18/24

For more information: https://www.homeaway.com/vacation-rental/p155123

19/24

This three-bedroom rental in Tivoli, N.Y., sleeps six and rents for an average of $452 a night.

20/24

For more information: https://www.homeaway.com/vacation-rental/p255235

21/24

This two-bedroom rental in Woodstock, Vt., sleeps eight and rents for an average of $243 a night.

22/24

For more information: https://www.homeaway.com/vacation-rental/p3003186

23/24

This 11-bedroom rental in Clyde Park, Mont., sleeps 30 and rents for an average of $1,500 a night.

24/24

For more information: https://www.homeaway.com/vacation-rental/p271592vb

20 best destinations to buy a beach house or condo

Rented.com looked at a number of factors that affect return on investment, including housing prices, real estate taxes and the local rental market, to determine the best places to own. No. 1: Panama City Beach, Fla.; 98.9 points out of 100. We’ve seen this Panhandle city at the top of our list before, thanks to the affordability and popularity of this year-round destination.

No. 4: Corpus Christi, Texas; 73.0. Hurricane Harvey limited supply while demand remains high for this coastal city on the southern Gulf Coast of Texas. Watch this spot though, as pending regulations could see this market tumble in future rankings.

No. 5: Cocoa Beach, Fla.; 71.3. This barrier island on the east coast of central Florida is known for its abundant outdoor activities, historical significance and proximity to Orlando (45 minutes).

No. 6: Galveston, Texas; 68.8. Vacation rentals are seasonal, but lower prices and the popularity of this family-friendly destination make this Texas Gulf Coast city a worthwhile investment.

No. 16: Miami Beach; 47.5. This, and the market one spot below are perfect illustrations of how more than revenue potential must be considered when assessing investment potential. Always a hot market with tourists, Miami is just as hot with property investors, pushing prices up compared to many on this list. Still, with the constant appeal of South Beach, this remains a top place to invest.

No. 17: Kauai, Hawaii; 45.9. This tropical Hawaiian paradise is always a popular destination, whether for ownership or rental. Newly increasing demand for rentals and year-round occupancy offsets relatively higher costs and limited rental zoning to help this island break into the top 20.

No. 18: Carolina Beach, N.C.; 44.9. Picturesque, this beach town is quaint and full of the charm you would expect from a southern seashore.

No. 19: Pensacola Beach, Fla.; 42.4. This white-sand beach on the barrier island of Santa Rosa has activities to appeal to every type of traveler.

No. 20: Key West; 42.3. There are very few beaches on this island, but there are endless water activities and stunning waterfront scenery, with enough options for visitors to choose between a relaxing or rowdy stay.

01/20

Rented.com looked at a number of factors that affect return on investment, including housing prices, real estate taxes and the local rental market, to determine the best places to own. No. 1: Panama City Beach, Fla.; 98.9 points out of 100. We’ve seen this Panhandle city at the top of our list before, thanks to the affordability and popularity of this year-round destination.

No. 4: Corpus Christi, Texas; 73.0. Hurricane Harvey limited supply while demand remains high for this coastal city on the southern Gulf Coast of Texas. Watch this spot though, as pending regulations could see this market tumble in future rankings.

05/20

No. 5: Cocoa Beach, Fla.; 71.3. This barrier island on the east coast of central Florida is known for its abundant outdoor activities, historical significance and proximity to Orlando (45 minutes).

06/20

No. 6: Galveston, Texas; 68.8. Vacation rentals are seasonal, but lower prices and the popularity of this family-friendly destination make this Texas Gulf Coast city a worthwhile investment.

No. 16: Miami Beach; 47.5. This, and the market one spot below are perfect illustrations of how more than revenue potential must be considered when assessing investment potential. Always a hot market with tourists, Miami is just as hot with property investors, pushing prices up compared to many on this list. Still, with the constant appeal of South Beach, this remains a top place to invest.

17/20

No. 17: Kauai, Hawaii; 45.9. This tropical Hawaiian paradise is always a popular destination, whether for ownership or rental. Newly increasing demand for rentals and year-round occupancy offsets relatively higher costs and limited rental zoning to help this island break into the top 20.

18/20

No. 18: Carolina Beach, N.C.; 44.9. Picturesque, this beach town is quaint and full of the charm you would expect from a southern seashore.

19/20

No. 19: Pensacola Beach, Fla.; 42.4. This white-sand beach on the barrier island of Santa Rosa has activities to appeal to every type of traveler.

20/20

No. 20: Key West; 42.3. There are very few beaches on this island, but there are endless water activities and stunning waterfront scenery, with enough options for visitors to choose between a relaxing or rowdy stay.